California, September 5, 2025

News Summary

California has increased its Film and Television Tax Credit Program budget from $330 million to $750 million, leading to a 400% rise in aid applications. This expansion aims to retain productions in the state, generating significant economic activity and job opportunities. With 22 television projects approved in the first round of incentives, the program seeks to combat competition from other regions and bolster the California entertainment industry, which has faced challenges in recent years.

California Expands Film and Television Tax Credit Program, Catalyzing Surge in Aid Applications

California has significantly increased its annual budget for the Film and Television Tax Credit Program from $330 million to $750 million as of July, resulting in a staggering 400% increase in aid applications compared to the previous year, according to the Governor’s Office of Business and Economic Development. The surge in applications reflects a robust response from the industry as it seeks financial assistance amidst competitive pressures.

The expanded budget has led to the approval of 22 television projects in the first round of incentive awards, marking a 38% increase from the 16 approvals during the same timeframe last year. The aggregate of approved projects is projected to receive approximately half of the total $750 million funding, with the remaining funds earmarked for future film endeavors.

Tax credits play a vital role in keeping productions within California as the state faces escalating competition from other regions offering enticing financial packages. Currently, filming activities at studio properties in Los Angeles fall below pre-pandemic levels, which has, in turn, influenced real estate demand negatively. In light of this situation, landlords and brokers see the expanded tax credit program as a stabilizing force, aiding in the filling of production stages within the state.

A prominent example of this shift is Netflix relocating Tom Segura’s series “Bad Thoughts” from Texas to Los Angeles under the new program. While this influx of activity is promising, there are underlying concerns regarding the sustainability of this increased interest in Los Angeles productions.

California has witnessed a decline in its status as the global entertainment capital over recent years, largely due to the pandemic, labor strikes, and rising competition from other locales. According to data, global incentive programs have increased by 39% from 2017 to 2024, demonstrating that many cities are eager to attract film and television projects.

The restructured tax credit program raises the project credit cap from 20% to 35% and introduces an option for reimbursement of unutilized credits starting from the 2025-26 fiscal year. The application process for upcoming film projects is set to open in August as the California Film Commission reviews applications based on criteria such as job creation, spending, and commitment to local filming.

Among the productions that have received credits are 15 new series, five renewals, and two relocations from other states. Notable new projects include dramas from Hulu created by Dan Fogelman and a new series from Larry David on HBO. The economic impact of these approved projects is significant, with projections of generating $1.1 billion in economic activity; this includes $714 million in spending and $413 million in wages.

The ventures are expected to generate over 1,100 filming days throughout the state, resulting in employment for approximately 6,500 crew members and more than 46,000 background actors. Nearly all of the approved productions are connected to major studios situated in Los Angeles, emphasizing the importance of this local industry.

Additionally, Warner Bros. Television is currently in the process of completing a $500 million renovation of its Burbank studio, which aims to add more sound stages and office space. Various new production facilities and expansions are also underway, notably with Hackman’s $1 billion overhaul of Television City.

The California Film Commission holds an optimistic view regarding the new tax credit’s potential impact on job creation and the retention of production talent within the state. State officials stress the necessity of maintaining world-class talent and crews to secure the future of California’s storytelling landscape.

Frequently Asked Questions (FAQ)

Key Features of the Expanded Tax Credit Program

Deeper Dive: News & Info About This Topic

• Los Angeles Times
• Encyclopedia Britannica: California Film and Television Tax Credit
• Deadline
• Google Search: California Film Tax Credits
• Variety
• Google News: California film industry

Author: STAFF HERE BEVERLY HILLS WRITER

The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.